Economists: Japan's Central Bank policy is normalizing and will raise interest rates again early next year

July 31st, Golden Data: Despite weak consumer spending, Fred Neumann, Chief Economist for Asia at HSBC, stated that officials from the Central Bank of Japan have sent a decisive signal by raising interest rates and allowing for a more gradual reduction of the balance sheet. Despite sluggish consumer spending, the rise in wage levels has made people optimistic about the recovery of the economy in the coming quarters. The rise in inflation expectations has also paved the way for the Central Bank of Japan to continue normalizing monetary policy. Without major disruptions, the Central Bank of Japan will further tighten monetary policy and raise interest rates again early next year.